Government and Prices

You could have a big dipper
Going up and down, around the bends
You could have a bumper car, bumping
This amusement never ends
--Peter Gabriel

Proposition 1: The more that an industry is regulated by government, the higher the prices of output produced by the industry.

Proposition 2: The more resources that an industry receives from government, the higher the prices of output produced by the industry.

Proposition 3: The more that an industry competes in markets unhampered by government intervention, the lower the prices of output produced by that industry.